Report on Ea-Kin Halal Company - Assignment Point
Report on Ea-Kin Halal Company
Subject: Organizational Behavior | Topics:

Business definition

Ea-kin Halal company will process and deliver the day to day consumer food item with in the way of the Qur’an and Sunnah by providing quality and promise, and Ea-kin provide service to the Halal food producer and additionally Ea-kin will go for Halal restaurant for Muslims community because of the over 2 billion Muslim’s religious demand.

Vision/ mission

Ea-kin Halal company is dedicated to living up to Halal Standards and professionally delivering quality service to the Muslim community by building the Ea-kin family with its distributors and retailers.

Environmental Scanning:

Local Market:

As a Halal food industry it is always need to know about the macro environment of a country which always shapes the business every time. In environmental scanning for our business we consider political, social, economic and technological issue which largely affect on our business.

  • Political: In Bangladesh, politics has become commercialized and business has become politicized. Politics is snatched away from the hands of politicians by those who use politics as a means of amassing wealth at the cost of national development and people’s welfare. For our business political stability is important because there is a issue of shipment of our product, make some policy about halal food industry, financial support by central bank which will be ensure by elected government of the country etc.
  • Social: As we want to provide our service into our country so we need to understand the social issue and balance of our country. We have almost 90% Muslim in our country but they are not aware about the halal products. But there is big demand for this product as we seen in the past. Another important thing is people are used to buy their frozen food item in their local market so we will try to reshape their purchasing behavior by creating some blank demand in their locality.
  • Economic:  Although the transition process from an agrarian economy to a manufacturing and service based economy has only begun, the common consensus between all political parties is that the market-oriented economic policy must be promoted. The private sector is now the major source of investment in the country and this is further accentuated by Bangladesh’s liberal economic approach. For our business we think about our business financing and also the purchasing power of the people of Bangladesh. Because we need low interest loan which help us to establish world class halal food producer and affordable price for local people.
  • Technological: As our business halal food processing so for our economic of scale we need very high tech technology for slaughtering house as well as for the ingredients by which the company will produce personal care product. But as we know Bangladesh is behind back in very high tech technology. So we have to import it from out side and also we have to trained up some skill people who can operate those machine and can be our competitive advantage in the supply chain.

Global Market:

The global Halal market value for trade in Halal foods is estimated at US$547 billion a year. This large market has created interest from food producing countries worldwide. In this respect, Bangladesh has the edge in being recognized internationally as a progressive Muslim country, where it has the potential of becoming a major producer of Halal food products. To realize this potential, apart from the commitment and support by the Government, the food-based Halal industries are shown to be focusing their efforts in producing and exporting Halal food products.

  • The trade in halal food is enormous with an estimated annual halal food value of US$347 billion (RM 1,317) globally.
  • Lucrative market and huge opportunities for halal food business – specially in international trade.
  • Many companies are looking at halal concept as a new tool for marketing. Some facts of market trend in abroad in the past few years did showed that the development of global Halal food market is up-rising.
  • Growth in the Muslim population, the primary market for Halal food;
  • Rising incomes in primary markets for Halal food;
  • Increasing demand for safe, high quality food in primary markets;
  • Increasing demand for greater variety in primary markets;
  • Incidents of food marketed as Halal but failing to meet Halal requirements has spurred demand for genuine Halal products.
  • The world Muslim population is about 1.84 billion in year 2007 and estimated by 2010, the global Muslim population will be approximately 3.0 billion;
  • Halal products and services are also gaining increasing acceptability among non-Muslim;
  • The global value in trade for Halal food and non-food products is estimated at USD1.2 trillion annually.
  • This market has created interest among food producing countries, both Muslim and non-Muslim.
  • Halal personal care products in the Middle East is currently estimated to be valued at $560m.
  • Demand for halal cosmetics worldwide is on the rise.
  • Most halal cosmetic manufacturers remain smaller, niche players.

Purchasing Power of the Muslim Countries          

Muslim Population (Million, 2005)Per capita food expenditure (p/a US$)Halal Food Market (Millions US$)
Africa461.77250115,443
West Asia195570111,150
South Central Asia584.8300175,440
Southeast Asia266.3735093,230
China39.11755,865
Europe (incl Russia)51.191,25063,988
North America8.261,75014,455
South America1.64500820
Oceania0.351,500525
Total1,565580,915

 Internal analysis:

Strength:

  • First and only holder of Halal Certification directly from the Division of Islamic Food & Consumption of JAKIM (Jabatan Kemajuan Islam Malaysia) in Bangladesh.
  • Malaysian Standard certified, MS 1500 Halal Food – Production, Preparation, Handling and Storage and also certified by ISO 9001:2000 and ISO 14001 certificates shows healthy and hygiene food standards.
  • New and very high tech technology, after slaughtered by hand rest of the process finished   through totally auto mated machine, from cutting to packing.
  • Highly trained up employee.
  • Big firm (Five acre) in Pabna for only producing Goat.
  • Highly network with different parts of the country from where we can bring cow in our slaughtering house.
  • Maximum amount of investment comes from the owner of the company.

Weakness:

  • Lack of knowledge because of in totally new business in Bangladesh.
  • Less number of efficient people.
  • R&D needs some advance technology by which they can invent new product and durable package system.
  • Lack of sufficient fund.

Competitive advantage:

Bangladesh has the comparative and competitive advantage in supplying some fresh and processed food products to the International Halal Market but the acceptance of Bangladeshi food products increasingly must address the growing concern by the Muslim consumers in these markets for a credible and globally recognized certifying body. And Ea-kin Halal food company will take the chance to provide fresh frozen food with very quick, good and efficient supply chain network in local and international market. So our company will provide the products into its destination without damage and must be on time. We will arrange our network in such a way that our inbound and outbound logistics added value for the consumer.

Halal Certification

Halal food certification refers to the examination of food processes in its preparation, slaughtering, cleaning, processing, handling, disinfecting, storing, transportation and management practices. The application of halal should apply to all stages of processing “from farm to table”.

Challenges to get Halal Certification

However, there were some challenges in certification when entering the global Halal market:

  • Reaching a consensus on certification requirements that avoids confusing, contradictory and costly requirements that will inhibit development of the Halal industry;
  • Protecting the integrity of Halal certification in order to avoid a loss of confidence by consumers;
  • Ensuring that claims regarding health and safety are based on science;
  • The relative lack of market information on Halal markets presents a significant challenge to exporters, especially exporters new to these markets.

Md. Rafiqul Islam (Head of SBU-1 Personal Care)

Market Potential

The market for Halal cosmetics is growing on a global basis, but nowhere is this trend more pronounced than in the Middle East, where conscientious consumers are specifically searching out Halal endorsed products. With the global market for halal commodities currently valued at $2 trillion alone, the slice of that market commanded by halal personal care products in the Middle East is currently estimated to be valued at $560m.

Demand for halal cosmetics worldwide is on the rise, driven not only by more affluent Muslim consumers but also growing interest in high quality, safe products. Sales of all kinds of halal-certified goods have surged in recent years alongside higher purchasing power in Muslim countries. Estimates for the global halal market range from US$547bn, according to the Malaysian Industrial Development Authority, to US$2.1 trillion, a figure cited widely by international media. Whatever the real size, everyone agrees that food accounts for the majority of sales. But new product categories are emerging.

Even as they lean towards western-style products and lifestyles, many Muslims increasingly make choices that reassert their identity as Muslims and respect their ummah (community), the Qu’ran and sharia principles. Many consciously seek out products with an Islamic brand. This approach triggered reaction from multinationals keen to grow their market share. But most halal cosmetic manufacturers remain smaller, niche players. As the demand for Halal cosmetics and personal care products are increasing we believe that in a Muslim country like Bangladesh, we have a great opportunity for Halal personal care products as well as the ingredients if we cable to create the right market awareness.

Environmental Scanning

Political:

Political stability is a must for every business. Though business in Bangladesh has suffered significantly from political turmoil, the scenario is changing gradually in a positive direction.

As a Muslim country we believe that the political barrier may not be problem for us to starting this business.

 Social:

Awareness and understanding of how halal relates to non-food consumer goods has been on the increase in our country. Increased halal observance and consumer knowledge of the presence of certain animal-derived active and functional ingredients in cosmetics particularly has translated to a more specific demand for halal products. For producers of cosmetics and personal care products wanting to be certified halal, the sourcing of active and functional ingredients that are Shariah compliant has become an increasingly important factor.

Economic:

The personal care and cosmetics sector had an estimated 9% share of the global halal products market in 2005 and this is expected to increase in the years to come as the demand for halal cosmetics increases. In Bangladesh the business of personal care products is also increasing rapidly which also draws the attention of the large multinationals and reputed local corporate. Hence, the demand of ingredients for personal care products and cosmetics is also escalating rapidly. On the flip side, Government of Bangladesh and Central Bank also encourages to manufacture raw materials rather than importing. However, in the current economic environment, a halal certified personal care products (as well as ingredients) may create new opportunities.

Technological:

From the technological standpoint it is difficult to set up this type industry in Bangldesh as the skilled personnel for this purpose are not easily available. However, we will go for an agreement to set up our machines with the help of a Malaysian company initially. The company will also train our local staff for operating the machines for the first couple of months which also be stipulated in their agreement.

Ecological:

It is believed that a halal label could be seen as the next “eco-ethical accreditation. People are looking for the next pure cosmetic.” Halal is not only religiously pure but is also manufactured with the highest standards of quality.

Business Strategy

However, considering the technological difficulties as well as the diversities for producing Halal ingredients of personal care products, primarily we will initially manufacture ‘GELATIN’ as it is most common ingredient for the personal care product industries. The word gelatine (also called gelatin) is taken from the Latin “gelatus,” which means stiff or frozen. Gelatine is basically a processed and refined animal protein, derived from bones, hides and collagenous connective tissues. It has a variety of industrial applications especially those related to food processing, pharmaceuticals, cosmetics & toiletries, photography, printing and many more.

For the Muslims community, availability of HALAL GELATIN is a very sensitive issue to ensure the consumption of genuinely Halal quality products. Gelatine is obtained by boiling the skin, tendons, and ligaments of animals. After the process known as hydrolysis, it contains protein, collagen (a primary component of joints and cartilage), and various amino acids. As we have already a well established Halal food processing concern we could easily collect the above ingredients to make the Gelatine and supply them to interested personal care/ cosmetics industries.

Our primary slogan for marketing may be as follows:

“Everybody, doesn’t matter what race or religion you are, you should have use Halal Gelatine for your products because as long as you selling your goods to Muslim people, you are bound to be responsible in respecting Islam religions law!”

A K M Joynul Islam (Head of R&D)

Europe is the world’s largest producer of cosmetic products, followed by the United States and Japan. Out of the total projected global cosmetics sales of € 126 billion in 2007, the European market has the largest share of about 55 per cent. Major global cosmetics producers are mainly multinational companies such as L’Oreal Group, Procter & Gamble, Unilever, Shiseido, Esteé Lauder, Avon, and Johnson & Johnson. Many of them are also involved in other sectors such as pharmaceuticals, chemicals and food products. Behind this glitter and glamour however, lies an overgrown monster desperate for an extreme makeover.

So we have the comprehensive opportunity to export our ingredients which could be used in cosmetics, pharmaceuticals, body care, food etc.

The main ingredients come from animal are which we can collect from our SBU2, followings-

Albumen:
In eggs, milk, muscles, blood, and many vegetable tissues and fluids. In cosmetics, albumen is usually derived from egg whites and used as a coagulating agent. May cause allergic reaction. In cakes, cookies, candies, etc. Egg whites sometimes used in “clearing” wines.

Allantoin: 
Uric acid from cows, most mammals. In cosmetics (especially creams and lotions) and used in treatment of wounds and ulcers.

Amino Acids:
The building blocks of protein in all animals and plants. In cosmetics, vitamins, supplements, shampoos etc.

Angora:
Hair from the Angora rabbit or goat. Used in clothing.

Animal Hair:
In some blankets, mattresses, brushes, furniture, etc. Alternatives: vegetable and synthetic fibers.

Bone Char:
Animal bone ash. Used in bone china and often to make sugar white. Serves as the charcoal used in aquarium filters.

Bone Meal: 
Crushed or ground animal bones. In some fertilizers. In some vitamins and supplements as a source of calcium. In some tooth paste.

Cholesterol: 
A steroid alcohol in all animal fats and oils, nervous tissue, egg yolk, and blood. Can be derived from lanolin. In cosmetics, eye creams, shampoos, etc.

Colors Dyes:

Pigments from animal, plant, and synthetic sources used to color foods, cosmetics, and other products. Cochineal is from insects. Widely used FD&C and D&C colors are coaltar (bituminous coal) derivatives that are continuously tested on animals due to their arcinogenic properties.

Cysteine, L-Form: 
An amino acid from hair which can come from animals, like from duck feather. Used in hair-care products and creams, in some bakery products, and in wound-healing formulations.

Down:
Goose or duck insulating feathers. From slaughtered or cruelly exploited geese. Used as an insulator in quilts, parkas, sleeping bags, pillows, etc.

Duodenum Substances:
From the digestive tracts of cows. Added to some vitamin tablets.

Fish Liver Oil: 
Used in vitamins and supplements. In milk fortified with vitamin D and also used in soap making.

Fish Scales:
Used in shimmery makeups.

Gelatin Gel:  

Protein obtained by boiling skin, tendons, ligaments, and/or bones with water. From cows. Used in shampoos, face masks, and other cosmetics. Used as a thickener for fruit gelatins and puddings (e.g., “Jello”). In candies, marshmallows, cakes, ice cream, yogurts. On hotographic film and in vitamins as a coating and as capsules. Sometimes used to assist in “clearing” wines.

Hydrolyzed Animal Protein: 
In cosmetics, especially shampoo and hair treatments.

Lanolin. Lanolin Acids. Wool Fat. Wool Wax: 
A product of the oil glands of sheep, extracted from their wool. Used as an emollient in many skin care products and cosmetics and in medicines. Also found in chewing gum and products with vitamin D3.

Leather. Suede. Calfskin. Sheepskin. Alligator Skin. Other Types of Skin:
Subsidizes the meat industry. Used to make wallets, handbags, furniture and car upholstery, shoes etc

Milk Protein: 

Hydrolyzed milk protein. From the milk of cows. In cosmetics, shampoos, moisturizers, conditioners, etc.

Oleic Acid:

Obtained from various animal and vegetable fats and oils. Usually obtained commercially from inedible tallow. (See Tallow.) In foods, soft soap, bar soap, permanent wave solutions, creams, nail polish, lipsticks, many other skin preparations.

Vitamin A:

Can come from fish liver oil (e.g., shark liver oil), egg yolk, butter, lemongrass, wheat germ oil, carotene in carrots, and synthetics. It is an aliphatic alcohol. In cosmetics, creams, perfumes, hair dyes, etc.

Vitamin D. Ergocalciferol. Vitamin D-2. Ergosterol. Provitamin D-2. Calciferol. Vitamin D-3:  

Vitamin D can come from fish liver oil, milk, egg yolk, etc. Vitamin D-2 can come from animal fats or plant sterols. Vitamin D-3 is always from an animal source. All the D vitamins can be in creams, lotions, other cosmetics, vitamin tablets, etc.

Wool:
From sheep. Used in clothing. Ram lambs and old “wool” sheep are slaughtered for their meat.

Among these ingredients we will emphasize on Animal Hair, Bone Char, Down, Fish Liver Oil, Fish Scales, Gelatin Gel, Leather, Milk Protein, Wool etc to export and will try to sell in local pharmaceutical company to fish liver oil, egg etc used to produce the vitamins.

SWOT Analysis

Strength:

  1. This company has its own Research Lab.

Weakness:

  1. This company does not have modern equipments to produce raw ingredients to export.
  2. There are not many expertises about these ingredients.

Opportunities:

  1. Huge market to outsource to pharmaceutical industry inside Bangladesh.
  2. Also has an opportunity to export those materials to EU as well as Asia.
  3. Around the world there is silent revolution about Halal food, cosmetics, we can make/call our product as halal or more environment friendly.

Threats:

  1. In Bangladesh there already is a firm which is producing halal meat, frozen fish etc and exporting.
  2. We don’t have Halal Certification Institute to get certification which Malaysia has.

Md. Golam Shaklayen (Head of SBU-2 Frozen Food)

The Muslim consumer who shops at the local Halal shop is still included in the 97% of the overall population who shop in the super and hyper markets, and therefore represents a significant opportunity for the giants to a) take custom from the Halal shops and b) offset losses to the discount stores.

Environmental Scanning

As a Halal food industry it is always need to know about the macro environment of a country which always shapes the business every time. In environmental scanning for our business we consider political, social, economic and technological issue which largely affect on our business.

  • Political: In Bangladesh, politics has become commercialized and business has become politicized. Politics is snatched away from the hands of politicians by those who use politics as a means of amassing wealth at the cost of national development and people’s welfare. For our business political stability is important because there is a issue of shipment of our product, make some policy about halal food industry, financial support by central bank which will be ensure by elected government of the country etc.
  • Social: As we want to provide our service into our country so we need to understand the social issue and balance of our country. We have almost 90% Muslim in our country but they are not aware about the halal products. But there is big demand for this product as we seen in the past. Another important thing is people are used to buy their frozen food item in their local market so we will try to reshape their purchasing behavior by creating some blank demand in their locality.
  • Economic:  Although the transition process from an agrarian economy to a manufacturing and service based economy has only begun, the common consensus between all political parties is that the market-oriented economic policy must be promoted. The private sector is now the major source of investment in the country and this is further accentuated by Bangladesh’s liberal economic approach. For our business we think about our business financing and also the purchasing power of the people of Bangladesh. Because we need low interest loan which help us to establish world class halal food producer and affordable price for local people.
  • Technological: As our business halal food processing so for our economic of scale we need very high tech technology for slaughtering house as well as for the ingredients by which the company will produce personal care product. But as we know Bangladesh is behind back in very high tech technology. So we have to import it from out side and also we have to trained up some skill people who can operate those machine and can be our competitive advantage in the supply chain.

Strategies for SBU2 (Frozen Foods)

Frozen Food Policy

  1. Formulate national Frozen food policy
  2. Research on infrastructure for Frozen food control activities eg. Frozen food act & regulations monitoring and enforcement, regulatory system etc.
  3. Studies on strategic marketing and trading for import & export of Frozen food.

Production Analysis

  1. Studies on development & production of Frozen food- ‘from farm to plate’.
  2. Research on development of new analytical approaches for Frozen food analysis & authentication
  3. Research from Shariah perspectives of Frozen food.

Professional Services

  1. Apply decision science in providing expert & confidential analytical services for frozen verification of food products.
  2. Frozen food training for food industries
  3. Consultancy on Frozen food matters.

ICT and Database

  1. Infrastructure development for Frozen food portal system and networking center.
  2. Database reference center for Frozen food.
  3. Information and dissemination of current issues on Frozen food.

Competitive Advantages

  1. Highly network with animal (Beef) supplier.
  2. Consistent supply and ability to meet bulk orders
  3. Strong logistics support.

Md. Mehedi Hassan (Head of Finance)

As finance head I have ensure the total financing for the project to start the project. And also ensuring the smooth business operation. That’s why I have to have clear coordination with the production, marketing and R& D team of this company. The name of our company is “Ea-kin Halal Company”.

SWOT Analysis

Strength:

  1. Our main strength is our capital the owners equity. We are not highly dependent on the bank loan.
  2. Another one is the hi tech machinery and state-of-the-art laboratories.

Weakness:

  1. Lack of more funds for the new project.

Opportunity:

  1. The big opportunity we have is that we have a very good market potential.
  2. Very good market demand both in internal and external market.

Threat:

  1. The only threat I have now is, if any international company arrives in this moment and invest a huge amount in their project then we will face the problem.

Financial Strategy

We need a huge finance for this project. The amount we need to start the project is around 200 crore Tk initially. So this amount we will collect from the owners of the company 70% and another 30% we will collect from the bank. This is our initial investment to start the business. After that if we found that what we are targeting, we achieved that then we will go for the share market to collect money. And also we will issue bond to collect money from the market. As it is a Halal food processing industry we can collect money from international market also.

Initial investment on the infrastructure and machinery is Tk 100 crore. All the available new and hi tech machinery is provided to the factory for better production. For the research facility there is a state-of-the-art laboratories equipped with instruments from Europe, Canada and USA. For this purpose we have invested another 15 crore. Tk 15 crore is initially allocated for the research facility. Tk 5 crore is for the goat and cow firm in pabna. Additional 1.5 crore Tk is allocated to the promotion of the new product. And Tk 40 crore will use in the production procedure by buying the materials and supporting materials.

Initially we have invested in new project, so we have negative cash flow for our company. Now this is natural that when we start the business the cash will be going out of the firm. When we will start the production and then start selling our products then we have positive cash flow. Now we can generate some other cash from our Personal care SBU. Like form selling the Extra head boans, other boans, the skin of cow and goat of leather. So when this amount will come as a cash inflow it will be used as backup cash for the different departments.

I will seek for the production demand, marketing demand and will allocate the money by analyzing the importance. I have got a demand of 10 lac kg yearly form my marketing department. And the production team has assure that if we can finance they will be able to produce. So for this reason I have provided Tk 40 crore for the production and operation. And 15% yearly budget money will be allocated for the Research & Development. And there will be another fund called “R&D vault” for the personal care. If we can earn profit then we will not disburse 100% profit to the owner. We will reinvest at least 34-40% for the growth of the company.

Now comes the internal part. Cost saving is the main issue for me as a finance head of this company but not to ignore the quality of the product itself. Because in today’s world quality of a product should be inbuilt. In the operation I will be keener to have the cost cutting but not to interrupt the smooth operation. And in the production less of wastage will make it clear. In marketing there will a special fund for promoting the products as we are new in the business we have to promote our products and I think for that we need some special budget and the amount for that has already been mentioned above. This is why a special fund will be provided to the marketing department.

Md. Rumanul Islam (Head of Marketing)

SWOT Analysis

Strengths:

  • “Ea-kin” has a strong team for Research and Development. The members consistently seek opportunities to find the new demands and meet them by launching new products.
  • “Ea-kin” has a strong financial condition and support from its finance department.
  • “Ea-kin” is going to talk’s quality and gives quality to its customers.
  • “Ea-kin” will update manufacturing plant with the capacity to meet the demand.
  • “Ea-kin” will have a wide variety of products which others do not have.
  • “Ea-kin” will achieve a good competitive advantage through its distribution coverage system.

Weakness:

  • It will charge a bit high price than that of its competitors.
  • Though it will select good distribution coverage system, products are always available in posh urban areas but in some common rural places they fail to provide the product in time, as a result it might losing some market share.

Opportunity:

  • The culture of ‘HALAL’ foods encourages the opportunity of expanding the market.
  • The market is large in this business. It’s about a million dollar business.
  • There is a huge prospect in this business; a small number of populations have become aware of the advantages of adopting the processed meat but huge population is there to adopt it.
  • A number of competitors are there in the market but they are relatively weak in terms of financial condition, company size and management.
  • Few firms are following the promotion mix, especially they are lacking in sales promotion but in this case Ea-kin is strongly following this strategy.

Threats:

  • The market has become competitive in terms of number of competitors as well as possible entrants of some new companies.
  • Consumers are exposed to ads given by some companies.
  • People of our country still think that this type of ready made meat will not give them that taste what they could have from the slaughtered meat which they make manually.

Marketing Strategy

  • Market Segmentation:

Our primary consumer target is Muslims who are in upper middle and middle class who are very busy with their everyday activities our secondary target market is urban areas and cities’ people who are high or middle income groups. And in global context we segmented on the basis of Muslim community.

  • Target Marketing:

Initially for targeting the market Ea-kin halal food processing went for Muslims who are living in urban areas. In this case, they followed the demographic segmentation. Working Muslim people of urban cities who belong to upper middle and middle class of society and obey the food habitations guided by Qur’an and who are very busy with their working lifestyle activities.

  • Positioning:

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Such as – to create awareness about the product. They have to position their brand “Ea-kin” by the desire of the target consumer.

Ea-kin will be the name of quality, where consumers can get pure and quality products without any hesitation.  “Ea-kin” is a brand which is used for cooking. So the consumer might think about the taste and how conveniently it can be used. In the positioning stage they are thinking about value proposition. Value proposition is the way where they reflect the core things what we are providing as per as the desire of the target consumer. So the positioning should be such where the core things will be reflected.

Consumer value proposition is:

VALUE = BENEFITS + HALAL

Now the global market requires:

VALUE = TASTE + CONVENIENCE + HEALTH + SAFETY + HALAL CERTIFICATION (from recognized credible body)

  • Sales promotion:

Sales promotion is crucial in attracting consumer. It can be of directly or via the intermediaries. Sales promotion is important to increase the sales. It is important to give incentives to intermediaries to make them satisfied. Otherwise they will switch the brand. “Ea-kin” is giving retailers and wholesalers various type of sales promotion like – They give various types of incentives.

Adding and giving more benefits to consumers is a way of delighting them and make them to be loyal to the brand in terms of competition. It suggests that we care for our consumers and other concern stakeholders as well.

The reason why they have ranked TV advertisement first is it because it is more important for them to reach their target market at the same time to fulfill their objective. As their target market is large and may be newspaper is not going to be an effective media to reach them. So they have decided to make their target consumer informed about any kind of change, gift, and discount. They will let them know by sales promotion comes later because at first they have to reach their target market then to make them satisfied and to retain them they must use sales promotion.

The Advertising along is not always enough to move their products off store shelves and in the hand of consumers. Company should also use sales promotion methods targeted at both consumer and wholesalers and retailers that distribute their products to stimulate demand.

The way it is important to give reason to by through advertisement, it is also important to give incentives to by the products and that is why sales promotion is important in promotion mix.

  • Channel/Communication Strategy:

Our channel strategy is to use selective distribution to have Ea-kin halal processed meat sold through all over the country. First year we will add channel partnership which will as follows:

  • Agora Departmental Store;
  • Meena Bazar;
  • ‘Swapna’ Departmental store;
  • Other renown stores located in crowded area of the city;

Until we have coverage in all major areas, we will support our channel partners to demonstrate products, detailed specification, and full color photos and displays featuring the product.

  • Customer Service/ Satisfaction Level:

Our target is to provide customer a quality meat which will be completely processed. So they don’t need to wait longer time for it & save their time. Moreover, customer can place order for huge quantity for different program as well in advance that we maintain with our channel partners. Special discount will be given in this regard.

  • Product Mix:

As we all know that there is a different categories of meat available in the market, we will also followed that kind of product mix which can be as stated:

  • Boneless.
  • Bonemix.
  • Leg piece.
  • Brain.
  • Heart flesh. etc

 This comprises of four sections. First section discusses the product attributes of Ea-kin halal meat. Second section visualizes the price of meat according to different categories of packet. Third section conceptualizes the distribution channel of the company itself. Final section discusses the promotional activities that the company undertakes for Ea-kin halal food product.

  • Price:

Though Ea-kin will povide halal food to its customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in this industry. Meat is a product with an elastic demand in Bangladesh. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. The most available price per k.g. on an average of every item will be tk 210..

  • Marketing Cost:

Ea-kin will have a huge distribution channel all over the country as its sales reach more than 1 million k.g. every year. The company has warehouses, in each district of Bangladesh, where the product goes after they are manufactured in the factory. The company uses its own transport for distributing its product.  However, it has outsourced its distribution process to various third party distributors, exclusively dedicated to the company. These distributors then supply the product all over Bangladesh to a huge number of retailers. Though Ea-kin targets the urban and sub urban middle and upper middle class people they are distributing their products all over Bangladesh, its estimated cost for this segment will be around 2 million taka.      

  • Promotion:

Ea-kin undertakes huge promotional activities to promote as a halal food which will have the second option among the meat industry of Bangladesh. It spends a huge amount of money for promoting Ea-kin through TV commercials, newspaper advertisements and billboards. Moreover it will also undertake small promotional campaigns at different places arranging cooking contests.

Production Capacity and Shortage analysis

Total market demand3000kg per day (Collect from marketing Dep’t)
Total production2000kg per day
Total Sales Volume420,000.00
Total profit60,000.00
Shift1
Demand Shortage1000kg

 SWOT Analysis

From the data analysis we find that every day our market demand is about 3000kg per day. But our production capacity is 2000kg.In this production firm high tech machine is used which made processing cost less than other traditional processing machine. Here we find that one shift is running by the firm. If it is possible to continue run by two shifts than the firms production capacity will be grown. As the Halal product of this firm has a huge market demand in nationally and internationally so it has opportunity to reach the number one (1) Halal food producing company in the world. On the other hand the firm should be analyze every moment its production quality. Because market is so competitive. So if any firm can fail to meet the demand of the customer then they will change his choice truck to another firm and firm will loss its market share.

Production Strategy

As a Head of Production I recommend Strategy for Halal food producing are:

  • Generic Strategies: The number of potential business strategies is probably as great as the number of different businesses. Each distinct organization must develop a strategy that best matches its internal capabilities and its situation with regard to the external environment. Still, many of the numerous strategies pursued by businesses can be loosely grouped under three main categories—cost leadership, differentiation, and focus
  • Cost Leadership: The first generic strategy, overall cost leadership, can enable a company to earn above average profits despite the presence of strong competitive pressures. But it can also be difficult to implement. In a company pursuing a low-cost strategy, every activity of the organization must be examined with respect to cost. For example, favorable access to raw materials must be arranged, products must be designed for ease of manufacturing, manufacturing facilities and equipment must continually be upgraded, and production must take advantage of economies of scale.
  • Differentiation: Companies that pursue a strategy of differentiation try to create a product or service that is considered unique within their industry. They may attempt to differentiate themselves on the basis of product design or features, brand image, technology, customer service, distribution, or several of these elements. The idea behind a differentiation strategy is to attract customers with a unique offering that meets their needs better than the competition, and for which they will be willing to pay a premium price.
  • Focus: Companies undertaking a focus strategy direct their full attention toward serving a particular market, whether it is a specific customer group, product segment, or geographic region. The idea behind the focus strategy is to serve that particular market more effectively than competitors on the basis of product differentiation, low cost, or both. Since focusing on a small segment of the overall market limits the market share a company can command, it must be able to make up for the lost sales volume with increased profitability.

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